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Market Overview

Preview: Snap's Earnings

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On Thursday, April 22, Snap (NYSE:SNAP) will release its latest earnings report. Benzinga's outlook for Snap is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Snap's per-share loss will be near $0.05 on sales of $742.94 million, according to Wall Street analysts. In the same quarter last year, Snap posted a loss of $0.08 per share on sales of $462.48 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 37.5%. Sales would be up 60.64% on a year-over-year basis. Snap's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.07 -0.05 -0.10 -0.07
EPS Actual 0.09 0.01 -0.09 -0.08
Revenue Estimate 857.39 M 549.99 M 433.11 M 431.43 M
Revenue Actual 911.32 M 678.67 M 454.16 M 462.48 M

eps graph

Stock Performance

Shares of Snap were trading at $58.49 as of April 20. Over the last 52-week period, shares are up 265.57%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Snap is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings